REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to execute a Side Letter Agreement between the City of Santa Clara and Unclassified Miscellaneous Management Employees (Unit 9) Regarding Healthcare Benefits
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
The Unclassified Miscellaneous Management Employees of the City of Santa Clara (hereafter, "Unit 9") Memorandum of Understanding (hereafter, "MOU") expires on December 31, 2024.
The City and Unit 9 began negotiations on a successor MOU in February 2024 and met approximately nine (9) times. Since the MOU is expiring and in an effort to continue successful negotiations on a successor MOU, the parties agreed to a Side Letter to expand the health insurance to align with eight (8) other bargaining units in the City. Additionally, updating the health insurance benefit will qualify the City to be a bona fide benefits plan. On or about September 3, 2024, Unit 9 notified the City that the Side Letter was ratified by Unit 9 membership.
DISCUSSION
The recommended action authorizes the City Manager to execute a Side Letter Memorandum of Understanding with a term of December 31, 2024, that incorporates the terms to extend the employer contribution for employee plus family coverage effective January 1, 2025. Currently, the maximum coverage is set at the employee plus one level.
Effective January 1, 2025, the City will pay 100% of the premium of the lowest-priced Kaiser (Region 1) plan for employees in Unit 9 enrolled at the Employee Only and Employee Plus One levels, and 90% of the premium of the lowest-priced Kaiser (Region 1) plan for employees in Unit 9 enrolled in the Employee Plus Two or More level. Employees who select a plan whose premium exceeds the City contribution described above will be responsible for the difference. Employees will not receive any portion of the City's contribution as cash or any other taxable benefit.
Current employees hired on or before December...
Click here for full text